Developing countries should consolidate real economy bases
Updated: 2013-07-16 20:06
Competition in the real economy is actually a process of reshaping the global industrial chains. Emerging economies cannot survive the competition if they do not focus their attention on developing advantageous industries or climbing up the industrial chains by innovation, according to an article in People's Daily (excerpts below).
The global financial crisis and social chaos in some places are caused by the decline of the real economy.
Germany's advantage in its manufacturing industries and other real economy sectors are the foundation for it to lead the European economy out of crisis.
The large scale of China's manufacturing industry, though remaining at a much lower level in contrast with Germany, also helps it resist crises.
The real economy is the foundation of a country's economic development. The progress of innovation in the US and the UK mark the West's return from its obsession with the virtual economy to the more important real economy. The two countries have increased their input in research and development of new technologies by a large margin.
The developing countries must not ignore their real economy foundation.